**Article:**
The European Central Bank (ECB) has announced that assets issued through distributed ledger technology (DLT) will now be accepted as collateral in its Eurosystem credit operations. This change applies to marketable securities held in central securities depositories (CSDs) that utilize DLT services. The decision marks a significant development in the integration of blockchain technology within the eurozone’s financial infrastructure.
By allowing DLT-based assets as eligible collateral, the ECB aims to modernize its operations and support the evolving digital financial ecosystem. This move is expected to facilitate smoother access to liquidity for market participants using innovative financial instruments based on blockchain technology.
**Why this matters**
The ECB’s decision reflects growing recognition of blockchain and DLT as important components of the future financial system. Accepting DLT assets as collateral could enhance efficiency, transparency, and security in financial markets. It also signals increased regulatory openness to digital innovation, potentially encouraging wider adoption of blockchain-based financial products across the eurozone.
Source: NewsData